Ukraine plans to legalize cryptocurrencies by early 2025, aiming to create clear rules and taxes without special tax breaks. The new law wants to control digital assets to keep finances stable and reduce risks like tax evasion and money laundering.
The draft law, created with feedback from the National Bank of Ukraine (NBU) and the International Monetary Fund (IMF), will tax profits from cryptocurrency when they are converted into fiat currency, similar to how securities trading is taxed. A group is finishing the bill, and the first reading in parliament is expected in early 2025.
Daniil Getmantsev, who leads the tax committee of the Verkhovna Rada, stated that tax exemptions for crypto transactions have been removed to avoid misuse and tax evasion, in line with global regulations.
During its conflict with Russia, Ukraine sees crypto as a way to ensure financial security, allowing for cross-border transactions and assisting citizens with disrupted banking systems. In 2023, crypto brought in almost $70 million to support Ukraine’s defense and humanitarian needs.
This initiative shows global trends, with countries like Russia and Morocco changing their crypto rules. Russia has stopped crypto mining in occupied areas but is easing tax rules at home, while Morocco is working on new regulations to lift its earlier ban.
Ukraine’s decision to legalize cryptocurrencies is an important step in bringing digital assets into its financial system. This move aims to improve transparency and financial responsibility, while also highlighting how crypto can strengthen the economy during tough times.
